Jim Chalmers says budget to address economic anxieties ‘driving’ Australians to One Nation | Australian budget 2026
One Nation cast a shadow over the federal budget and influenced decisions to reform negative endowments and taxes; Jim Chalmers acknowledged that many Australians are feeling economic concerns that are “leading them to consider” right-wing populist parties.
The Chancellor of the Exchequer and Anthony Albanese acknowledged that many people were left out of the housing market and that the problem had gotten worse rather than better under Labour. With Pauline Hanson’s party winning a historic by-election in Farrer – the first lower house seat victory in its 30-year history – the government was braced for the threat of a wave of populist grievances similar to those in the US, Britain and Europe.
“I think the housing market and the tax system are not working for many Australians and we’re trying to solve that problem tonight,” Chalmers said on Tuesday morning, hours before announcing his fourth budget.
“It will also respond to a lot of the pressures and concerns that people are feeling, which is pushing them to consider some parties outside the mainstream.”
One Nation comes in second place in recently published opinion polls, just behind Labor, with 25% of the primary vote.
On Farrer, One Nation’s David Farley won nearly 40% of the primary vote. The Liberals and National Party won a combined 22% of the vote in the seat where former MP Sussan Ley won 43% of the primary vote last year.
Albanese and his senior ministers have been talking more lately about how to combat a growing threat from ultra-conservatives, including restoring trust in the government and delivering material improvements in people’s lives.
The Prime Minister, Chalmers and other government sources have all but confirmed negative gearing, capital gains tax and major changes to the treatment of trusts in a bid to tip the economic balance in favor of ordinary voters rather than investors and wealthy Australians.
Asked if he had an eye on One Nation for Tuesday’s budget, Chalmers said it was an economic document, not a political strategy, but that the government was trying to solve the same kinds of problems that fueled the Hanson vote.
“I’m not dismissing or denying the real concerns many Australians have about their ability to gain a foothold in the housing market or the broader economy,” he said.
Shadow treasurer Tim Wilson said he feared young people looking to enter the housing market would be deprived of the wealth-building opportunities enjoyed by older generations, who receive generous tax breaks on property investments and assets. He claimed the widely speculated changes were “moving young Australians up the ladder of opportunity”.
“In the meantime, they are preserving existing regulations for existing investors,” he said.
On Monday, Albanese said the rise of right-wing populists such as One Nation was “what happens when people don’t think they’ve had a fair chance”. On Tuesday, he said economic conditions were worsening for many Australians.
“We now know that the dream of home ownership is becoming increasingly difficult for a generation of Australians. And if we don’t do something about it, the situation is likely to get worse rather than better,” he told 2HD Radio.
On Nova radio, Albanese said the budget would solve “some problems that have been shelved for too long”.
“Tonight you will see some changes in the way the tax system works and also in increasing supply,” he said.
The Australian Council of Social Services (Acoss) has called on the government to do more for Australians most at risk, including removing income support and investing in social and affordable housing.
“Low-income people are already skipping meals, delaying medical care, and rationing energy just to get by, and they are the group with the least protection during a time of unprecedented economic shock,” said Cassandra Goldie, CEO of Acoss.
“Tax cuts will not help the least well off. Many disabled people are already alarmed and fearful about what major cuts to the NDIS will mean for them.”
